Apple paired strong third-quarter results with a weaker-than-expected revenue forecast for its fiscal fourth quarter, which runs through September. Net income climbed to USD29.7 billion from USD23.4 billion a year earlier while total revenue rose 16% to USD109.4 billion from USD94 billion. Product revenue increased to USD78.6 billion from USD66.6 billion and services revenue reached USD30.7 billion versus USD27.4 billion a year ago. Within hardware, iPhone revenue advanced to USD54.2 billion from USD44.5 billion and Mac revenue grew to USD10.3 billion from USD8 billion.
Management now expects fiscal fourth-quarter revenue to grow only 9% to 11%, falling short of analyst forecasts of more than 12% growth for the period. That quarter is likely to mark the launch window for Apple’s next iPhone lineup, making the softer outlook notable.
Supply constraints on computer processors and sharply higher memory costs are pressuring margins and limiting how many devices Apple can ship. The company already responded by raising prices on Macs and iPads last month, an unusual move that underlines the cost pressure.
Operational headaches extend beyond pricing. The supply crunch has pushed out delivery times for core machines such as the Mac mini and Mac Studio, frustrating customers and dampening potential sales.
Apple signalled that shortages will hit more Macs, iPhones and iPads in the current quarter, suggesting the constraints are broad rather than limited to a single product line. Currency fluctuations are adding another drag, making Apple’s products more expensive in some markets and reducing reported revenue when foreign sales are converted back into dollars.
Those headwinds help explain why the stock just recorded its steepest one-day drop in roughly 16 months, despite headline earnings growth.
